General Comments / Chat, page-12915

Dr T,

I am unsure if you consume much of Dr Alan Taylor's media content on Clarity Pharmaceuticals however if you do he recently had a chat with Frazis Capital partners, out on youtube, and made a couple of interesting observations. I am a shareholder and respect the business he has built but subjectively I note he comes off as a bit hubristic and condescending to his competitors which leaves me cautious about how he might operate as a manager inside his business when his ideas are challenged.

Other than making it plain that he does not have much regard for the demands of retail investors, he also made comments that, while I wouldn't say mirror your recent comments, share some similarities. Merely that he doesn't care about the share price other than the difference between buy in, and point of exit. He makes this under the banner of not being a "trader". I'm just curious if you see it the same way.

Note that while the current depressed shareprice has prompted me to ask, I fully accept your proposition that the bear market has descended on biotech big time and you have no control over macro conditions, to the extent that and other non controllable factors like JC sales have driven present decline. And not any other factors are driving it such as OPT blowback, which I think is plausible but I don't really know, though I'd welcome your further thoughts on Megan's postion whether she stays on or her role changes or is removed, any which way.

Personally I think regardless of the share price when exiting, shareholders should be interested in the maintenance or growth of the shareprice even when not looking to exit as maintaining as high a valuation as possible is critical :
1. In case of strategy pivot demanding capital raising to minimise dilutions,
2. to present superficially at least as investment grade to new investors by maintaining a 'respectable' market cap (not that I can define that...), and
3. to present a substantially high starting point for any offer of market cap multiples in the event of a takeover event that dissuades shareholders from accepting a lowball offer. I'll admit that large management ownership and a sticky, loyal shareholder base like you seem to have cultivated might derisk this third one a a bit.

I'd be curious about your thoughts though only if time and interest permits and regardless see right now as a bit of a gift and will be averaging down a touch. Thanks as always to you and the team.